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Real Estate Market

The economic reforms of the Slovak government from the 2002-2006 period led to impressive economic growth, which last year came to over 8% on average.

The construction sector reflects the excellent
condition of the Slovak economy, and so the whole country is experiencing a
construction boom. The heart of construction work and real estate development
is the capital Bratislava,
which is undergoing unparalleled development. It is as if the Slovak metropolis
wanted to make up for the almost construction apathy of the period of
international isolation that Slovakia
faced for the best part of the 1990s. The new construction fever is seeing
thousands and thousands of square metres of commercial and residential premises
being built each year.

Today Bratislava
has a stable place on the map of global real estate players. While just a few
years ago the mention of it would just raise the scrutinizing eyebrow of
experts, nowadays Bratislava is one of the most
sought after investment localities in Europe.
Commercial properties in the city on the Danube
are owned by big names like Heitman, Rodamco Europe, Hannover Leasing or Axa.
Eight out of the ten biggest real estate transactions in Slovakia concern Bratislava. In Bratislava you can find world renowned developers
like Ballymore Properties, which are accompanied also by strong Slovak players,
which now play their hands throughout Central East Europe. Prestigious
consulting companies also have branches here, like CB Richard Ellis, Colliers
International and King Sturge.

All segments of the property market are developing,
but it is office space in particular that is doing best, and which next to
flats is the most developed market segment. A boom is also being enjoyed by
retail premises and shopping and leisure centres.

Thanks to its unique position, Bratislava and the surrounding area is an
ideal location for logistics warehouses. Tourist potential on the other hand
attracts developers that specialize in hotel projects. The strong economy of
the region also reflects in flat construction, with the Bratislava region producing almost one third
of the annual total number of started and completed flats.

Until recently, Bratislava
had no real estate trump card in sight. During the whole of the 1990s only one office
complex was completed, comprising the four business centres BBC I-IV on Plynarenska Street.
The big players bypassed Bratislava, and the
so-called big six property consulting companies also had no representation in Slovakia. Yet
it was this that enabled the growth of a strong group of developers from the
domestic environment. Companies like HB Reavis Group, J&T Real Estate,
Cresco Group or IPR took advantage of the absence of foreign competition and so
now their names are known also on a European scale. Today they are being driven
forward also by competition from abroad, which now fully realizes the immense
potential of Bratislava.

What attracts them here? Available space. Bratislava is probably
the last major European city where there is still an abundance of potential
construction sites available. Fantastic locations that till recently were not
utilized, are now transforming into new city quarters, giving the Slovak
capital a new character. The new Land Use Plan of the city identifies a total
of 4,000 hectares
of additional development land earmarked for the construction of flats, shops,
offices and related infrastructure. This is the key competitive advantage of Bratislava in enticing
foreign investors here, which no other European city can offer.

Special importance in the urban concept of Bratislava is associated
with the embankments on both sides of the River Danube, the historical city
centre, the castle and the area below the castle, together with other protected
heritage sites. A specific position is held by the dockland area. The hub of
the new plans is the area on the north bank of the Danube
between The Old Bridge and The Harbour Bridge. Bratislava will also develop outwards to the
southwest in the direction of the Austrian border, in what is referred to as
the fourth quadrant, this having been prevented till now by the iron curtain of
the totalitarian regime. This will help renew and enhance territorial and
service-related relations with municipalities on the Austrian side.

The city centre also expects to transform, as it
becomes broader, more attractive and livelier. Probably most importantly,
former factory sites will vanish from the centre, being replaced by modern
architecture and adopting a multipurpose role. Emphasis will be put on the
construction of mixed-use buildings with quality housing, premium office space,
shops and leisure areas with parks, playgrounds and sports facilities. The city
centre will start to spread out toward the river, thanks to which Bratislava will reclaim its former title of “Beauty on the
Danube”. Several kilometres of modern
attractive boulevard will run along both banks of the river. The revitalization
of the embankment zone will be taken care of by experienced developers with the
best possible references, such as Ballymore Properties or J&T Real Estate.
Development will start on the north bank, and the Danube
embankment projects of the decade will be called Eurovea and RiverPark.

The areas around the central bus and train stations
will be transformed, with property mega projects cropping up worth hundreds of
millions of euro. By 2011 the north and south of the city on either bank of the
River Danube will be linked up by a modern high-speed tramway, which will
connect up to the existing tramline network. In the coming years the city plans
to invest millions of euro, primarily into the revitalization of transport
infrastructure.